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SCM 2 F Chap 2 PDF
SCM 2 F Chap 2 PDF
Competitive strategy
Competitive
Competitive strategy
Competitive strategy of a firm will be defined by
customers priorities.
Competitive strategy targets one or more customer
4-3
Competitive strategy
All functional strategies as well as supply chain
one
another
and
the
aligned goals.
4-8
4-10
4-11
e.g. a firm supplying emergency orders for a product will face a higher
implied demand uncertainty than a firm supplying the same product
with long lead time
Supply Uncertainty
Frequent breakdowns
Increase
Increase
Poor quality
Increase
Increase
Increase
Increase
Table 2-3
Implied Uncertainty
Thus
4-16
that best meets the demand a company has targeted given the
uncertainty.
Responsiveness Spectrum
and
supply
chain
responsiveness.
is
best
served
by
increasing
4-26
efficiency.
Thus IKEA provides responsiveness in supply chain with the stores
Primary goal
Product design
strategy
Pricing strategy
Manufacturing
strategy
Inventory strategy
Lead-time strategy
Supplier strategy
For low cost channel (e.g for Wall Mart) designed a low cost
supply chain.
unpredictable.
Margins are often high, and time is crucial to gaining
sales.
Product availability is crucial to capturing the market.
Cost is often a secondary consideration.
Later stages:
Demand has become more certain, and supply is
predictable.
Margins are lower as a result of an increase in competitive
pressure.
Price becomes a significant factor in customer choice.
Figure 2-7
Contd